The Labor enquirer., 1887-05-28
When and How It Might Be
Loaned to Advantage by
the Government.
Some Bright Thoughts That Deserve
Serious and Thoughtful
Consideration.

Ou euo PoVPAo o iooA ooeoVo Ava
years at d low rate of interest, it would
have three important effects: first, to
reduce the rate Of interest on all invest
ments; second, to destroy great deal Of
the value, power and monopoly of banking
institutions; and lastly, by the right of
foreclosure the government would soon be
the owner Of large per cent of the real
estate of the country, and would thus be-
come the peoples landlord and could by
this power considerably reduce rents.
The government would loan greenbacks
on the mortgages, and as this money costs
the government little or nothing, when it
foreclosed the mortgage it would practi-
cally get the land for nothing; yet the
original owner would be selling it at a
fair price.
This would have another effect: the in
terest and rents the government received
would lbe SO much revenue and conse-
quently make other taxes so much less.
Greenbacks issued for a good real es-
tate mortgage would give the greenback
intrinsic value for each greenback would
then repr esent SO much real estate, and
real estate is as good as gold to base pa
per curren ency upon. When the govern
koLn, l>ccl~ n rvooI vpOrtnono for
every paper dollar it issues then its paper
will be as good as gold.
The policy of the government loaning
money to the people on real mortgages
the mortgages to be foreclosed at the ex-
piration Of their term mot exceeding ten
years., if not paid off, and at any time be-
fore that if the annual interest failed to
be paid, W ould soon operate not only to
turn large part of the land and build
ings over to the government, make the
paper money sound currency, give US
strong government, materially reduce in
terest, rents and taxes and weaken the me-
nopoly power of banks; but it would prac-
tically give us free land without resorting
to Henry Georges taxation scheme or to
The government will adopt the policy
of lending money directly to the people
when the working people are sufficiently
aroused to see the disadvantage to them
of sending bankers and millionaires to
congress.
In the Credit Mobiler scheme the gov
ernment loaned the Union Pacific railway
company the money to build that road
and the government took a mortgage on
the road to secure the loan. The mort
gage is now due and unpaid. 1t is the
duty of the government to foreclose the
mortgage and take this railroad. Why
does it not take it and operate it as gov
ernment property? The reason the gov
ernment does not foreclose and take the
road is simply this: the railroad mOnopo-
lists and their tools are all in congress-
They should be turned out and the gov
ernment should claim its own. 1t has
paid for it and it should so use it as to
break down other railroad monopolies
That railroad is the backbone of the
whole railroad system in the United States
and can be so welded as to break down
every other railroad monopoly. The gov
ernment has paid for the railroad; why
does it not take it for the good of the
people? We are continually told that
congress can do little or nothing for the
poor and middle classes, yet every thought.
full person knows that to be deliberate
falsehood. Congress being made up of
capitalists works for the good of capital.
When the useful classes are sent to con-
gress, congress will be useful to the peo-
pie. Congress can and ought to reduce
interest r ent and taxes, and cripple the
power of bank and railroad monopolies.
1t can do these things almost without an
effort, and without producing any shock
whatever, or giving any one just cause
for complaint. Why doesn't congress make
these NOV es in the interest of the people
The answer is easy: it is simply because
the middle and poorer classes have never
been represented in congress.
The first practical move of the Labor
party is to drive the bankers and monop-
olists out of congress. Without the sue
cess of this movement all other efforts
with the ballot are worthless.
Telling us that congress has no power
over monopoly in business enterprises, or
over interest rent and taxes, is simply
telling us deliberate falsehood.
The wor rking people are just waking
up to som , of the true causes of their op-
preston. Congress has loaned money to
a railroad corporation, and it can loan it
to the peop pie. 1t is time to wake up!
Don't send sharks to congress to guard
the interest of the little fishes. Let each
of us vote with more sense or keep our
ballots in our pockets"